A proper description of your business idea is the foundation for your whole business and a starting point for building a happy company. Obviously, you must make sure that you are building your business on a solid rock, not on quicksand. Therefore, you must invest sufficient time and effort to develop a proper description of your business idea.
In this post, I will cover the initial description of your business idea that you will write for yourself. The one that you will do for lenders, investors, etc. will come later (when and if you need them) and will have to be longer, broader, deeper and more formal.
The former description is essentially a simplified vision (down the road you will develop a comprehensive one) of your future business. It should be no more than one page long (single space) and contain answers to the following key questions in reasonable detail (roughly in one short paragraph – 1-3 sentences - each):
- What will be the scope of your business – local, state, nationwide, international?
- What will be the ultimate size of your business – small, medium, large, very large?
- Will it be online, offline or both?
- What kind of product(s) and/or service(s) will you offer?
- Who will be your target market?
- What kind of need and/or want/desire will your business satisfy?
- What are your key advantages over your competition and how stable these advantages are?
- What are your key competencies and why are they sufficient to start and successfully grow this business?
When you complete the draft of your business idea description, it is a good idea to show it to an experienced and competent advisor who can provide a highly valuable (often vital) feedback. Dozens of resources for entrepreneurs (government and non-profit and even some commercial consulting companies) provide these services for free – both offline and online.
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